Sunday, January 2, 2011

Income Units

Income units are a type of unit in a unit trust that regularly pays out or passes through any dividends and interest on the securities in the portfolio. These units and products that focus on income generation and distribution are particularly suitable for investors who are seeking income from their investments (such as retired persons, or persons with large capital bases and who seek to supplement their income). Investors need to be aware of the tax implications, if any, of investing in a fund that focuses on income generation and distribution, particularly in terms of optimal tax efficiency.

Synonyms: Income fund, Distributing fund, Distribution units

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